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Layoffs Before Vesting
Pump.fun, a Solana memecoin platform, reportedly fired employees in late March and early April, weeks before their PUMP token allocations were set to vest.
“Pump Fun “grew too quickly” and couldn’t move “fast and rough.””
Protos reports that Sandmark obtained recordings and files showing Pump Fun “grew too quickly” and couldn’t move “fast and rough,” with several employees terminated in April.
Coin Academy says employees had signed in mid-June 2025 a token grant agreement providing for the release of a quarter of their allocation one year later, placing the first tranche in June 2026.
Cointelegraph adds that agreements viewed by Sandmark scheduled the unlock of a quarter of the employees’ allocated tokens in one year, scheduled for June 2026, and says at least one worker was due to receive PUMP tokens worth in the seven-figure range.
Pluang also notes that Pump.fun (PUMP) surged 3.20% to $0.002061 and led the day’s crypto gainers with a market cap of $819.56 million.
Claims, Numbers, and Dispute
Protos says an X account claiming to campaign on behalf of Pump Fun employees who were laid off before their vesting period unlocked alleged that over 40 staff members faced the chop in the last two months.
DiarioBitcoin similarly reports that an account attributed to a former worker claimed a second round of cuts that would have affected 40 people in July, and says the account claimed layoffs occurred one day before PUMP token allocations were due to vest.
Coin Academy states that former employees report more than 40 departures in two months, while Sandmark says it could not independently verify these claims.
Cointelegraph reports that Pump.fun co-founder Noah Tweedale attributed the layoffs to the company growing too quickly, and says the layoffs were fired in April, just two months before employees were due to start receiving PUMP tokens.
Pluang adds that Pump.fun token price climbed above $0.002 on July 27, boosted by the launch of the BOOST feature, which supports liquidity through targeted buys and burns.
Regulatory and Legal Fallout
Coin Academy says Pump.fun operates under the name Baton Corporation Ltd in the United Kingdom, even as it has blocked British users since December 2024 following a warning from the FCA that the platform might provide financial services without authorization.
“the company has blocked British users since December 2024”
Coin Academy reports that the company remains on the regulator's alert list and that the most recent accounts filed by Baton cover the year ended March 31, 2024, when the company reported three employees to the Companies House register.
Coin Academy adds that the subsequent accounts, for the period ended September 30, 2025, were due by June 30 and are now late, with penalties of £150 for delays up to one month, £375 for delays of one to three months, and £1,500 for delays of six months.
Protos says UK Companies House states the accounts dated up to 30 September 2025 are yet to be filed, and that the penalty for being more than a month overdue is £375 ($505).
Coin Academy also points to a legal backdrop involving Jarett Dunn, who siphoned about $2 million from the company’s wallet, and says Dunn was sentenced to six years in prison by Wood Green Crown Court in December 2025.